Nomura sued by Japan shipping firm for Madoff deal

TOKYO, June 1 (BestGrowthStock) – Japanese shipping firm Inui
Steamship Co (9113.T: ) said it has sued Nomura Holdings (8604.T: )
for $5.1 million for brokering an investment with convicted
U.S. swindler Bernard Madoff.

An official for Inui said the company filed the suit with
the Tokyo District Court last month, saying it lost $5.1
million on dollar-denominated securities sold by Nomura and
invested with Madoff. The official asked not to be named.

Kenji Yamashita, a spokesman for Nomura, Japan’s largest
brokerage, confirmed the suit but declined to elaborate.

Details of Inui’s complaint and Nomura’s response were
unavailable from the court.

Madoff is serving a 150-year prison term after pleading
guilty to 11 counts of securities and mail fraud, perjury and
other charges in March 2009. Prosecutors say he ran a $65
billion Ponzi scheme in which he cheated investors who believed
he was generating safe, consistent returns with their money.

A Ponzi scheme is one in which corrupt money managers use
funds from some clients to pay other clients. The scheme
collapses when they are eventually unable to meet redemptions.

Stock Market Research

(Reporting by Junko Fujita; Editing by Muralikumar

Nomura sued by Japan shipping firm for Madoff deal